CANADA’s dairy industry is poised to benefit from lower prices in the short term after the Canadian government announced a $100-billion dairy industry stimulus plan that will support the industry over the long term.
In addition to boosting Canada’s dairy sector, the Dairy and Milk Product Promotion Program, or DMPP, will boost exports and boost employment.
Dairy farmers, ranchers, processors and exporters will benefit from higher prices and lower supply, says the CMSP, a government program aimed at supporting the dairy sector.
The DMPP is part of the federal government’s ambitious $3.8-billion milk plan, which also includes a dairy subsidy program that will increase dairy farmers’ incomes and help reduce the cost of milk to consumers.
According to the CMPS, Canada’s total dairy production in 2020 was approximately 9 million tonnes, down slightly from 10 million tonnes in 2020.
“We are seeing that dairy farmers are seeing the benefit of lower prices,” said Andrew Hutton, the minister responsible for the dairy industry, in a statement.
There’s a lot of talk about the dairy boom coming back, but if the economy goes down, the dairy economy could actually be a negative for the economy.
That’s because, in Canada, the market has a lot to do with what you eat.
The dairy industry accounts for a small portion of Canada’s overall economy, but the impact it has on the economy is huge.
“The impact of the milk price recovery has been significant,” Hutton said.
He said the DMPP would also boost exports, boost jobs, and help stimulate the Canadian economy.
Last year, Canada produced more than $1.8 trillion worth of milk, according to the Canadian Dairy Export Federation.
The total value of Canada ‘s dairy exports stood at $1,834.5 billion, or almost one-third of the $2.1 trillion total exported in the country last year.
Canada’s dairy farms, ranches and processing plants account for about one-fifth of Canada s total GDP.
The country s exports of milk and cheese to the U.S., China and Europe account for another quarter of its total trade.
About $600 million of the DMP money will be used to support dairy operations in the Alberta and Saskatchewan provinces, where production is most concentrated, and to increase export potential in the West.
Other parts of the government plan include $300 million for a $50-million pilot program that would support dairy production and processing in British Columbia and Quebec.
Some of the money will also be used for increased dairy marketing, including the development of the country s dairy product guide, which will be expanded to include products from across Canada.
Canadian dairy farmers have been able to recover from the commodity slump thanks to low prices, which helped them compete against the cheaper milk in other parts of Canada, including Mexico and the U,S.
Hutton said the government plans to provide additional financial support to small- and medium-sized dairy producers, including farmers in Manitoba, Ontario and British Columbia.
“The dairy industry has been resilient, and it has a great future,” he said.